David, Having started my career in FMCG Marketing (when marketing was still a strategic rather than operational function) in the early 70s, I quickly learnt how to spend other people's budgets
- truth is that its owed to Ashley by Ashley, Ashley covered the monies owed on the thing he bought outright, meaning he spent about £250mil and if he sells for less than that he loses money. There is no debt burden because the entity NUFC owes no one any money apart from it's outright owner who will recoup this (or not) on sale
exactly what Ashley did, now if they sell for more than purchase price + debts cleared they make a profit, if they sell for less then they don't, exactly like Ashley. you could call the debt clearance in either case an 'interest free loan' or you could just call it making an asset more saleable by clearing its obligations to third parties of course due diligence would mean the debts would effect the asking price, which is exactly why businesses are sold for the nominal fee of £1 but the buyer must clear loads of debt - turn it round and sell for purchase price + debts cleared and then some and you did alright 'interest free loan' is a mis-leading term, probably coined by the press
In terms of accounts, the club do owe money but, as you rightly say, the debt is with the owner so it becomes irrelevant
It is very far from being irrelevant when the valuation of the club comes into consideration or when the club attempts to borrow money as the debt is clear listed as a debt on the clubs accounts. The difference between the two clubs is that LFC's accounts are 'clean'.
